Malaysia’s Prime Minister Anwar Ibrahim announced a set of new measures on Wednesday to address growing public concern over the rising cost of living. The initiatives include a one-time cash handout for all adult citizens and plans to lower fuel prices across the country.
The announcement comes ahead of a planned protest in Kuala Lumpur this Saturday, organized by opposition parties to demand Anwar’s resignation due to escalating prices and perceived delays in implementing promised reforms. Authorities estimate that 10,000 to 15,000 people may attend the demonstration.
One-Time Cash Handout for Adults
Under the new measures, all Malaysian citizens aged 18 and above will receive 100 ringgit (approximately $23.67) in a one-time cash handout. The payments are scheduled to begin on August 31.
The government plans to allocate a total of 15 billion ringgit ($3.55 billion) for cash aid in 2025, up from the initially planned 13 billion ringgit. Prime Minister Anwar emphasized that the initiative is part of a broader effort to address the financial challenges faced by citizens, particularly those in lower-income groups.
Fuel Price Adjustment
Anwar also announced plans to reduce the price of RON95 petrol, lowering it from the current 2.05 ringgit per liter to 1.99 ringgit per liter. Foreign nationals will continue to pay market prices for fuel. The government expects to implement these changes before the end of September, coinciding with a broader plan to rationalize fuel subsidies.
Economic Measures and Concerns
This year, the government has introduced several measures aimed at boosting revenue and productivity. These include a minimum wage increase, higher electricity tariffs for heavy users, and an expansion of the sales and services tax. Critics, however, worry that increased costs for businesses could eventually be passed on to consumers, affecting lower- and middle-income households.
Economists suggest that the cash handout and fuel subsidy adjustments could stimulate domestic demand amid global economic uncertainties. However, there are concerns about the financial burden on the government and its ability to maintain fiscal targets. Fitch Ratings and other analysts have noted that delays or insufficient progress in subsidy reforms could impact Malaysia’s goal of reducing its deficit to 3% by 2028, with public debt expected to remain high at around 76.5% of GDP in 2025.
Government Response and Future Plans
Prime Minister Anwar acknowledged public complaints about the rising cost of living and reaffirmed the government’s commitment to addressing them. He indicated that additional initiatives aimed at supporting vulnerable groups would be announced soon.
The measures reflect a balance between immediate relief for citizens and longer-term economic planning. Analysts note that while the cash handouts and fuel price cuts provide short-term support, the government will need to carefully manage fiscal risks to maintain economic stability in the coming years.